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ONE VERSION OF a proposed New Jersey bill that would reshape hotel franchising in the state has passed out of committee in the Assembly but efforts reportedly are under way to amend it to address opponents' concerns. The Senate version of the bill remains in committee. The American Hotel & Lodging Association, a long-time critic of the proposed legislation, called the Assembly Committee on Commerce, Economic Development and Agriculture's passage of the bill a "dangerous step forward." Supporters of the bill, including AAHOA as well as sponsors of the bill, did not respond to requests for comment in time for this article. What's at stake The bills, A3495 in the Assembly and S2336 in the Senate, were introduced at the beginning of the year to replace the original legislation that stalled in the state's legislature last year. It is essentially the same as its prior incarnation. Specifically, the provisions include restricting non-competes that are longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services.

DESPITE SOME REVISIONS, the American Hotel & Lodging Association, AAHOA and the NYC Minority Hotel Association remain opposed to New York City's hotel licensing bill, citing concerns about significant economic harm to small, family-owned, immigrant and minority-owned businesses. However, the Hotel Association of New York City dropped its opposition after securing changes to the bill, which requires operators to obtain a license. New York City Councilwoman Julie Menin's original bill faced strong backlash from operators, who argued that the measure, presented as a way to address unsafe and unsanitary conditions, was actually intended to favor unionized hotels. A hearing on the bill is set for Oct. 9, with a positive deal paving the way for its passage. "We are thrilled to announce major progress on an agreement for the Safe Hotels Act! We will be hearing the bill on Oct. 9 and look forward to a productive hearing," Menin wrote on X. In July, Menin promoted her bill as a measure to crack down on crime in hotels.

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MORE THAN A thousand hotel owners, workers and small business owners from the newly formed "Protect NYC Tourism Coalition" rallied on the steps of New York's City Hall on Sept. 12 to protest the city council's "Safe Hotels" bill. The coalition also sent a letter urging the council to reject the bill, also known as "Int. 991", arguing that the bill threatens the sustainability of New York City's hotel and tourism industries and jeopardizes the livelihoods of thousands of workers. The coalition includes members from AAHOA, the American Hotel & Lodging Association, the Hotel Association of New York City, the Real Estate Board of New York, the Coalition for Hotel Subcontractors, the NYC Minority Hotel Association, the National Association of Black Hotel Owners, Operators, and Developers, along with other groups and stakeholders supporting New York City's tourism industry. First introduced by Councilwoman Julie Menin over the summer, Int. 991 is presented by supporters as a "simple licensing bill." Opponents argue it would impose operational mandates that could drive many hotels out of business, jeopardizing 42,000 hotel jobs and nearly 260,000 jobs supported by the industry, along with billions in revenue for New York City.

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THE U.S. SENATE and House passed a $1.5 trillion government-funding package last week that includes some much-needed relief for the hospitality industry, two associations said. However, the spending bill also missing some elements industry advocates have pressed Congress and the administration to pass. The omnibus spending bill passed on a 68-31 vote in the Senate and is now awaiting President Biden's signature, according to government focused news agency RollCall. com. At 2,700-pages, the omnibus contains all 12 fiscal 2022 spending bills and has been in negotiations for five months. The bill includes the Restoring Brand USA Act that will provide $250 million in relief funding to the destination marketing organization that promotes travel to the U.S. The U.S. Travel Association welcomed that fact in a statement from Roger Dow, USTA president and CEO.

AAHOA MEMBERS RECENTLY testified in support of New Jersey Assembly Bill 1958, which would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry. The association's support for specific parts of the bill is at the center of a division between AAHOA and two major hotel companies over franchise reform. On March 22, 30 AAHOA members attended a hearing of the New Jersey Assembly Commerce and Economic Development Committee during which the bill was passed out of the committee. Several of the members also testified, according to AAHOA. AAHOA members own 45.4 percent of New Jersey hotels, representing 46,124 rooms, the association said. "As the largest hotel owners association, representing the exclusive interests of America's hotel owners, AAHOA showed up in New Jersey to testify in support of amendments to the legislation to improve the franchise model," said Nishant "Neal" Patel, AAHOA chairman. Last May, a contingent of AAHOA members testified in favor of the bill in front of the New Jersey Assembly Judiciary Committee, particularly the aspects of the bill that match AAHOA's 12 Points of Fair Franchising. Specifically, the franchise reform changes supported by AAHOA include restricting non-competes for longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services.

THE NEW YORK City Council postponed a hearing, originally scheduled for July 30, on the "Safe Hotels Act" bill in response to protests from industry associations and hotel owners. The American Hotel & Lodging Association and AAHOA argued that the bill would disrupt their members' businesses and significantly harm the city's nearly 700 hotels and approximately 265,000 employees. The associations welcomed the delay, allowing more time for feedback before the legislative process continues. "Over the last 10 days, NYC's hotel industry and the tourism economy have rallied to speak with one voice and resoundingly make clear that the Hotel Licensing bill introduced in the City Council has the potential to devastate New York City's hotel industry," said Kevin Carey, AHLA's interim president and CEO. "We are grateful for the support of our members, hotel industry coalition partners, and our allies in the restaurant and real estate community for helping to avert an economic disaster in New York City that no one wants."

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A NEW JERSEY bill that will reform the franchise business model in that state took another step forward today, moving from the Assembly to the Senate, and supporters, including AAHOA, expect it to become law this year. However, the American Hotel & Lodging Association has come out in opposition to the law, saying it would "undermine the foundation of hotel franchising." New Jersey Assembly Bill A1958 would make changes to the New Jersey Franchise Practices Act. AAHOA has been supporting the bill, saying it mirrors several concerns included in its 12 Points of Fair Franchising. Specifically, it would reform rules for mandated vendors, rebates, loyalty programs and new fees, AAHOA said in a statement. "New Jersey has long been a state with a strong entrepreneurial culture that has been welcoming to immigrants, including many AAHOA members," said AAHOA Chairman Bharat Patel. "The state Assembly recognized that and took a step toward making New Jersey a better place for small businesses with today's vote to advance fair franchising principles. New Jersey can be an example to the nation for supporting franchising practices that allow hotel owners to achieve the American dream." AAHOA supports the preference of certified women-owned, minority-owned and veteran-owned businesses to serve as the mandated and preferred vendors for the franchise business model.

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NEW YORK CITY Council members recently introduced a bill requiring hotels to obtain additional licenses to operate in the city. However, the American Hotel & Lodging Association called the bill "destructive," warning it would permanently alter hotel operations and threaten thousands of jobs in the city. The bill's sponsors claim it addresses several issues, including prohibiting hotels from using subcontractors for core functions, adopting minimum hygiene standards and committing to policies to prevent prostitution and human trafficking. AHLA urged the council to slow down on the proposed licenses, noting they would decimate the hospitality economy. "This abrupt and destructive bill would permanently alter how hotels operate and threaten the jobs of thousands of New Yorkers," said Kevin Carey, AHLA's interim president and CEO. "If it becomes law, thousands of hotel jobs could be lost, hotels will shutter, and New York City's economy - especially small business retailers, restaurants, and other hotel service providers - will suffer substantially."

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THE RECENTLY PASSED federal $1.7 trillion omnibus spending bill contains important gains for the travel and hospitality industries, according to several advocacy groups. That includes the Omnibus Travel and Tourism Act and the creation of a position in the Department of Commerce to coordinate travel and tourism industry strategy. AAHOA, the American Hotel & Lodging Association and the U.S. Travel Association all welcomed the passage of the spending bill that was signed into law by President Biden on Dec. 23. All cited the OTTA legislation created by U.S. Sens. Jacky Rosen, Democrat of Nevada, and Republic Roger Wicker of Mississippi through the Senate Committee on Commerce, Science, and Transportation. What is the OTTA? The elements of the OTTA include the Visit America Act, which authorizes the creation of the new position in the DOC. The new assistant secretary would coordinate a strategy across multiple federal agencies to increase travel and tourism nationwide through annual goals and recommendations. "This means the industry will finally have a seat at the policy table after decades of advocating for this to occur," said Laura Lee Blake, AAHOA president and CEO, in LinkedIn.com post.

REPRESENTATIVES OF THE U.S. hospitality industry recently rejected the New York City Council's revisions to the proposed hotel licensing bill, which include a new licensing structure, direct employment of housekeeping and maintenance staff, and a ban on subcontracting key operations. The American Hotel & Lodging Association and the Hotel Association of New York City objected to the amendments, warning of potential closures and layoffs in the city's hotel sector. The bill, known as the Hotel Safety Act, originally proposed by Councilwoman Julie Menin on July 18 and revised on Aug. 2, seeks to introduce staffing and operational mandates that AHLA considers unnecessary. "The city council's discussions regarding the Hotel Safety Act continue to exclude those who will be most affected by the legislation-hotel owners, management companies, sub-contractors and tens of thousands of hotel workers," said Kevin Carey, AHLA's interim president and CEO. "It is imperative that all stakeholders have a real seat at the table. If this is a matter of public safety and crime, as has been claimed by Councilwoman Menin and the bill's proponents, let's review the facts and statistics to see what picture they paint."

THE NEW JERSEY legislature is considering legislation that would strengthen protections for franchise businesses in the state, including hotels. AAHOA recently visited the state's capital to express its support for the bill. Assembly Bill 1958 would make changes to the New Jersey Franchise Practices Act that could benefit the hospitality industry, AAHOA said in a statement. Specifically, the changes include restricting non-competes for longer than six months; prohibiting requiring a relocation or capital investment greater than $25,000 more than once every five years unless hotel franchisers can establish a return on the investment; requiring a franchiser that receives "any rebate, commission, kickback, services, other consideration or anything of value" to fully disclose them to the franchisee and turn them over to the franchisee; putting restrictions on mandatory sourcing of goods or resources; and prohibiting suspending, restricting or preventing access to franchise services. Several AAHOA representatives attended a hearing at the New Jersey State Assembly on May 12 to support the bill. They included AAHOA's Mid Atlantic Regional Director Mahendra "MZ" Patel, Past Chair Bhavesh Patel and Laura Lee Blake, the association's recently appointed president and CEO.

THE U.S. SENATE voted to block the National Labor Relations Board's final definition of joint-employer status, following up on a similar bill passed by the House. President Biden is expected to veto the bill, but opponents of the NLRB joint employer rule, such as the American Hotel & Lodging Association, claim the Senate's resolution was a "win for hoteliers." After the House passed its Congressional Review Act against the NLRB rule in January, the U.S. District Court for the Eastern District of Texas also issued an order blocking the NLRB rule. AHLA supported both efforts to block the NLRB rule, calling the current joint employer definition a threat to the hotel franchise model. "Today's bipartisan Senate vote is a win for hoteliers and small business owners everywhere, and shows the rule is out of step with Congress, the courts, and America's job creators. Lawmakers from both parties in the House and Senate realize the administration's joint-employer rule would acutely suppress job creation for hoteliers and other businesses, and therefore it needs to be abandoned," said Kevin Carey, AHLA Interim president and CEO.